Taconic Partners, a vertically integrated real estate development firm based in New York, is making the move to the Sun Belt. The firm has tapped Sheldon Pariser as executive vice president to lead its expansion into acquiring multifamily assets in the Southeast and Texas.
This expansion builds on Taconic’s track record in New York and the tri-state area, where it has developed or repositioned over 7,300 units.
“Taconic’s track record in the residential and multifamily sector puts the firm in an advantageous position to deliver on long-term, sustained rental demand across the Sun Belt,” says president and chief operating officer Colleen Wenke.
Pariser joins Taconic from real estate investment manager Prospect Ridge, where he was a principal. In his decade there, he oversaw acquisitions and asset management across a range of property types and equity strategies. Prior to that, he served in Cantor Fitzgerald’s real estate CMBS group.
MFE caught up with Pariser to learn more about his new role and Taconic’s expansion into the Sun Belt.
Why is now the right time for Taconic Partners to expand outside of New York and the tri-state area?
In the Sun Belt markets we cover, pricing has dramatically reset, and the continued operational softness being felt from oversupply will put pressure on existing owners and create new entry points. Finding the right assets where Taconic can add operational value will enable us to capitalize when supply and demand come back into balance.
We view this expansion as complementary to our New York track record. We have a number of active, large-scale rental projects across the New York market that are seeing significant demand, including The Ellery, a 330-unit multifamily building that we opened last year in Hell’s Kitchen and which recently leased up in well under a year. The need for housing and the flight to high-quality rentals is a long-term shift for the U.S. as a whole, not just New York. As active developers focused on delivering exceptional resident experiences that meet local consumer demands, we see the time is right to take that approach to a wider market.
What are your priorities in your new role?
In the near term, I will focus on acquisition and investment opportunities throughout Texas and the Southeast. I will also oversee our asset management capabilities to ensure we execute the business plans effectively.
Are there specific markets and/or product types that Taconic will be pursuing?
Dallas, Atlanta, and certain other secondary metros throughout the Southeast will be the focus. Within those markets, we’re focused on acquiring larger (200-plus units), market-rate multifamily properties with value-add potential.
How does Taconic plan to differentiate itself in competitive Sun Belt markets where many institutional investors are active?
Taconic has extensive experience with repositioning and improving underperforming assets, and our expertise and track record in the multifamily arena will travel. Not all investors are developers. And in an uncertain macro environment, fundamentals matter as does the ability to solve unique problems, because every project will have them, even in the best of times.
What are your goals for the Sun Belt in the short and long term?
Our short-term goal is to identify existing market-rate multifamily properties where we see opportunity to improve the residential offering and add value. We plan to build an appreciating portfolio in the region and, over time, build a team to help realize this goal. This is a long-term expansion for the firm to become a more national presence in the multifamily space.
What’s in the pipeline for Taconic for the remainder of the year?
In addition to this geographic expansion, we have a number of new developments, including most recently the Miramar, a 698-unit, 17-story, mixed-use development in Inwood in Upper Manhattan. In addition to delivering a substantial amount of housing to the market, the building will provide a performance space that can flex to 208 seats for The People’s Theatre. We are also excited to welcome the first Aldi south of 125th Street in Manhattan at The Ellery, our 330-unit multifamily building that we opened last year in Hell’s Kitchen.
